Air Transport World

Investment firm to take major stake in Fairchild.(Clayton, Dubilier and Rice)(Brief Article)(Statistical Data Included)

Clayton, Dubilier & Rice, the New York investment firm that sold Allison Engine Co. to Rolls-Royce in March 1995, is poised to take a major stake in Fairchild Aerospace, sources close to the negotiations reveal.

The regional jet manufacturer is seeking $350 million in seed capital from private lenders for its ongoing jet programs and CDR is expected to provide this funding. In addition, CDR may acquire the 56% of Fairchild Aerospace held by Chairman Carl Albert for an as-yet-undetermined amount.

Fairchild President Jim Robinson said the $350 million in private investment capital will be matched by a $350 million loan guarantee backed by the German government--which could hit a snag due to an investigation recently launched by the EC. …

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